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    "# 金融市场基础第10节课书面作业\n",
    "\n",
    "学号：114847\n",
    "\n",
    "**作业内容：**  \n",
    "\n",
    "1. A bank has an outstanding trade with one of its counterparties with an exposure of $500,000 and a recovery rate of 70\\%. The bank estimates that there is a 2\\% probability that the counterparty will default on its obligations. What is the bank's expected loss?  \n",
    "2. What kind of approaches can be used to mitigate Credit Risk?"
   ]
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   "source": [
    "## 第1题\n",
    "A bank has an outstanding trade with one of its counterparties with an exposure of $500,000 and a recovery rate of 70\\%. The bank estimates that there is a 2\\% probability that the counterparty will default on its obligations. What is the bank's expected loss?"
   ]
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   "source": [
    "**答：**  "
   ]
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   "source": [
    "$$\n",
    "EL = PD \\times (1-RR)*exposure\n",
    "$$"
   ]
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     "text": [
      "The bank's expected loss: $3000.000000\n"
     ]
    }
   ],
   "source": [
    "exposure = 500000\n",
    "RR = 0.7\n",
    "PD = 0.02\n",
    "EL = PD*(1-RR)*exposure\n",
    "print('The bank\\'s expected loss: $%f'%(EL))"
   ]
  },
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   "cell_type": "markdown",
   "id": "19f26568",
   "metadata": {},
   "source": [
    "## 第2题\n",
    "What kind of approaches can be used to mitigate Credit Risk?"
   ]
  },
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   "cell_type": "markdown",
   "id": "08acb0ab",
   "metadata": {},
   "source": [
    "**答：**  \n",
    "信用风险缓释的方法有：商业银行运用合格的抵质押品、净额结算、保证和信用衍生工具等方式转移或降低信用风险。"
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